Rex Stores Corp, (RSC: chart), consumer electronics retailer, reported Q1 earnings of 13 cents a share, down from a profit of 48 cents a share a year-ago. The company added that it incurred $600,000 in stock option expense in Q1. Sales declined to $86.1 million from $87.9 million in the same period a year ago while same-store sales inched 0.5% higher in Q1. The company also announced that it no longer anticipated additional from the sale of its synthetic fuel interests in light of a decision by Progress Energy, the purchase of Rex''s partnership interest in the Colona synthetic fuel investments, to stop production reflecting the higher oil prices that have increased the probability that related tax credits would be reduced or phased out in 2006. Income from synthetic fuel limited partnership interests came in at $2.1 million in Q1, lower than $6 million in the year-earlier period.